Siemens exits Telecoms altogether
By Ben Robinson on Saturday, August 9th, 2008 at 10:13 AM PST In Financial/Corporate News, Siemens
Siemens is apparently selling off it’s home cordless phone business unit, in a deal that will signal the completion of exit for the company out of the telecommunications industry. Siemen’s exit from the industry has taken 3 years, with the company’s CEO refocusing on segments such as energy and healthcare, in which it is a big player.
Of course, there have been moves previous to this one where Siemens has spent time ridding itself of Telecoms units – who can forget the disastrous divestiture of it’s Mobile handset unit to BenQ in 2005? In the end, BenQ decided to stop funding the division, pushing it in to insolvency. On the more positive side, Siemens spun off it’s network infrastructure business in to a partnership with Nokia (NYSE: NOK), forming NSN in 2007. This year, it has sold off it’s wireless modules business, and also Siemens Enterprise Communications.
So, in some respects a sad ending to Siemens’ involvement in Telecoms, but one which will allow the corporate to be a leaner organisation in the industries which it is now focusing it’s energies in…..
[Via: GSMworld.com]
Hope siemens be successful on the venture it has chose.
Siemens was once a leader in Telecom, but the quick turnover in Technologies which began in the 80’s does not fit the German Model. Telecom Leaders must proceed with high risk, but there can be high rewards. The German corporate mentality is low risk, low-to-medium rewards, and stability.